Strikers halt 90pc of Fiat's production

Striking Fiat workers and police clashed in southern Italy yesterday, as the dispute halted most of the group's vehicle production across the country. The 10-day walkout at the Melfi car factory escalated when police tried to clear a picket line, injuring seven demonstrators and two policemen.

In the latest blow to Fiat's attempts to curb losses, more than 90pc of Fiat's car production in Italy was halted, an industry source said. A Fiat spokesman said the group had lost production of 16,300 vehicles. Umberto Agnelli, Fiat's chairman, said: "These are sad days. We are trying to do everything to resolve a difficult situation. Despite an open table (for talks), we are giving away car sales to the competition." The carmaker is trying to end the worst crisis of its 100-year history.